50Hertz plans to invest some €3.4bn

26.02.2019

Northeast Germany – and thus the control area of TSCNET shareholder 50Hertz, one of the four German transmission system operators (TSOs) – continues to be a pioneer in the integration of renewable energies in Central Europe. For the second year in a row, renewables accounted for more than half of electricity consumption, and once more a new record was set with a regenerative share of 56.5% (2017: 53.4%). The installed capacity of renewables rose to 32.9GW, which is why Boris Schucht, CEO of 50Hertz, had every reason to express his contentment with this development during the 50Hertz balance sheet press conference on 26 February 2019 in the German capital of Berlin: “We are proud that with this record share of renewables, we can contribute to a successful energy transition.” Since this share will increase continuously in the 50Hertz control area, the federal growth target of 65% for 2030 can be achieved as early as 2021.

At the same time, the costs for congestion management, mainly caused by redispatch, fell significantly last year, by an impressive €100m to around €105m. This is due in particular to the effect of the extra-high voltage line “Südwest-Kuppelleitung” (aka “Thuringian Power Bridge”) and two now fully operational phase-shifting transformers (PSTs) on the borders with Poland and the Czech Republic respectively. But also in the future, the expansion of the transmission infrastructure must keep pace with that of the renewables. 50Hertz is taking this into account with exceptionally high investments in the transformation of the energy system. These are facilitated by the TSO’s excellent operating results. Over the past five years, 50Hertz has already invested over €3bn in the grid (€492m in 2018). By 2023, 50Hertz plans to spend a further €3.4bn (€420m in 2019).

Among the outstanding infrastructure projects are the “Ostwind 1” offshore connection, which has been in trial operation since last year, and the “Combined Grid Solution”, a Danish-German interconnector in the Baltic Sea that links the German “Baltic 2” wind farm with the Danish “Kriegers Flak” farm and will be connected to the grid in 2019. The supra-regional DC project “SuedOstLink” is making significant progress, too, as the federal sector planning is underway and the European tender for the underground cables has been launched. 50Hertz CTO Dr. Frank Golletz, who will take over the function of Boris Schucht as interim CEO from 1 March 2019, announced the continuation of the TSO’s ambitious investment program. Golletz also pointed out that the political and regulatory framework must be optimised and made innovation-friendly to realise the energy transition.

50Hertz presents excellent results for 2018 and announces further sustainable investments in its transmission grid (illustration using pictures of 50Hertz)

Linkup
> See 50Hertz press release (html)
> Open press conference presentation, in German (pdf, 4.09MB)